BURLINGTON, ON / ACCESSWIRE / January 16, 2018 / Memex Inc. (”Memex” or the ”Company”) (TSX-V: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its annual financial and operational highlights for its fiscal year ended September 30, 2017. All results are reported in Canadian dollars.

Summary Financial Highlights for the Year Ended September 30, 2017:

Memex reported a $3.98 million net and comprehensive loss for the year ended September 30, 2017 on $2.01 million in revenue equating to a $0.034 loss per share. This compares with a $2.81 million net and comprehensive loss on $2.91 million in total revenue for the year ended September 30, 2016, and a $0.028 loss per share;

Bookingsi for the year totalled $2.37 million versus $3.42 million a year ago;

Backlogii at September 30, 2017 was $1.31 million, up $464 thousand from $848 thousand a year ago;

Gross margin percentage for the fiscal year was 55.4%, down from the 66.2% last year;

Cash consumed from operating activities (before changes in working capital balances) was $3.69 million for the year, up $969 thousand from $2.72 million a year ago; and

The Company had $2.79 million in working capital including $3.46 million in cash at year end, relative to $3.11 million in working capital and $2.90 million in cash at the end of fiscal 2016.

Management Commentary:

”Fiscal 2017 was a challenging year for Memex,” said President and CEO David McPhail. ”Uncertainty surrounding the tax policy during the U.S. election extended well into mid-2017 for our targeted customers. Our sales ramp through the back half of 2017 was slower than anticipated. Although I am disappointed with our results, we continue to get positive feedback from our customers around MERLIN’s value proposition and feature set. As the largest shareholder, I remain confident in the positioning of our product, the significant funnel of interested customers and can assure you we are working to turn around our financial performance in 2018. I would like to thank our loyal shareholder base over the last year as we worked through the more challenging than anticipated market conditions.”

2017 Fiscal Year End Operational Highlights:

The Company successfully closed an equity financing for more than $2.85 million in (gross) proceeds through the sale of 17.8 million units at $0.16 (a share and half warrant) on September 26, 2017;

In Q3 the Company secured its largest ever single-customer project, SEW Eurodrive, worth more than $450 thousand dollars for a plant-wide MERLIN implementation at one of this customer’s locations; and

The Company restructured its sales management and delivery procedures during the year, including hiring a VP of Sales and the adoption of SalesForce to better mine Memex’s existing U.S. Pipeline, develop new markets and growth opportunities and to better monitor the Company’s sales development activities.

Memex reported revenue of $626 thousand, 22% lower than the same quarter a year ago;

Gross margin of 66.4% was down from 71.9% reported the same quarter a year ago;

Bookings[i] for the quarter were $364 thousand (net of a $129 thousand lost order), down 55% from the same quarter a year ago; and

Memex reported a net and comprehensive loss of $881 thousand for the quarter, equating to a $0.008 loss per share. This compares with a $726 thousand net and comprehensive loss in Q4 last year, and a $0.007 loss per share.

Selected Financial Information:

Three-months period ended

September 30

Year ended

September 30

(Canadian dollars – in thousands except per share and margin%)

2017

2016

Change

2017

2016

Change

Revenue

625

806

– 22%

2,008

2,910

– 31%

Bookingsi

364

811

– 55%

2,370

3,416

– 31%

Gross margin %

66.4

71.9

55.4

66.2

Operating expenses

1,284

1,296

– 1%

5,083

4,867

+ 4%

Cash utilized in operating activities1

779

659

+ 18%

3,389

2,720

+ 36%

Net and comprehensive loss for the period

(881)

(726)

+ 21%

(3,984)

(2,805)

+ 42%

Basic and diluted loss per share – period

(0.008)

(0.007)

+ 15%

(0.034)

(0.028)

+ 24%

Before changes in non-cash working capital balances.

As at

(Canadian dollars – in thousands except WC ratio)

September 30, 2017

September 30, 2016

Cash on hand

3,458

2,899

Current assets

4,104

4,156

Total assets

4,522

4,639

Current liabilities

1,313

1,047

Working capital*

2,791

3,109

Working capital ratio**

3.13 to 1

3.97 to 1

Backlogii

1,311

848

* Working Capital = current assets – current liabilities

** Working Capital ratio = current assets / current liabilities

i & ii These non-IFRS financial measures are identified, defined and reconciled to their closest IFRS measures, revenue and unearned revenue, within our Management’s Discussion and Analysis for the periods ended September 30, 2017 and 2016, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under our company profile.

About Memex Inc.:

Memex was founded with a vision to improve the way automated machine and production equipment work and connect on the factory floor. Since then Memex has proved itself a pioneer in IIoT time and again. The company is committed to its mission of ”successfully transforming factories of today into factories of the future” and envisions converting every machine into a node on the corporate network, creating visibility from shop-floor-to-top-floor. Memex is the developer of MERLIN, an award-winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time. Memex’s software and hardware IIoT solution enable customers to achieve tangible IIoT-centric business outcomes. The MERLIN software suite and connectivity products have enabled manufacturers to achieve upwards of a 50% increase in productivity and a 20%-plus increase in profit, on average. Additionally, customers have secured payback in less than four months, which equates to an Internal Rate of Return greater than 300 percent. For more information, please visit: www.MemexOEE.com

Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

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About Memex

MEMEX, with its visionary attitude, has been on the leading-edge of the convergence of the industry trends in Computing Power, Connectivity of Machines, Industry Standards, Advanced Software Technology, and Manufacturing Domain Expertise. MEMEX is the developer of MERLIN, an award winning IIoT technology platform that delivers tangible increases in manufacturing productivity in real-time.